City of Washington Fiscal Year 2020/2021 Budget Presentation 1 - - PDF document

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City of Washington

Fiscal Year 2020/2021 Budget Presentation

Fiscal 2020-2021 Budget Overview

• Property tax valuation growth was tightly constrained this

year due to a decrease in the residential rollback, but we have prepared a responsible and sustainable budget within the available resources.

• As Presented:
• The General Fund budget is exactly balanced to keep the projected

GF balance at $1,000,000.00 per the adopted policy related to our City Hall/Police/Fire building projects.

• Property Tax levy is the same at $15.22394/$1,000 valuation.
• 2% average (non-union) salary increases are included
• The net change in General Fund spending is 0.36%.

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Fiscal 2019-2020 Budget Overview

• As Presented (Continued):

▫ Proposed addition of a full-time Building Maintenance position to keep our

newer facilities, especially Library, Fire, City Hall & Police nice and well-

• maintained. This position will be housed in the Library department.

▫ Funding is included for projects including the North 4th sewer separation &

street project, City Hall/Police building completion, and Wellness Park

• completion. Total capital projects are estimated at $8 million.

▫ Water is budgeted at 7.5% on usage only. This level is higher than the

recent past, but is necessary due to a large reduction in usage by our largest water user. Sewer is budgeted at 3.5% on usage only.

▫ Sanitation is budgeted with the 5% increase already included in our code

update.

General Fund Budget

Overall:

 Revenues: $3,920,793.61  Expenditures: $3,920,793.61  Surplus (Deficit): $0.00  Estimated balance at 7/1/20: $1,000,000.00  Estimated balance at 6/30/21: $1,000,000.00  We are getting close to the 25% minimum undesignated fund

balance we like to keep in the General Fund, so in future years, we may recommend raising this fund balance amount.

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Police, 33.17% Communications, 0.03% Fire, 11.61% Animal Control, 0.74% Street Lighting, 0.00% Dvpt Services, 2.22% Library, 12.09% Parks, 8.46% Pool, 1.86% Cemetery, 4.38% Financial Admin, 15.21% Mini-Bus, 5.78% Oth Outside Entity, 2.10% General Insurance, 2.34%

General Fund Budget Allocation

Police Communications Fire Animal Control Street Lighting Dvpt Services Library Parks Pool Cemetery Financial Admin Mini-Bus Oth Outside Entity General Insurance

Police Budget Summary Revenues: $26,625 Local Option Sales Tax Transfer In: $300,000 (same as current) Expenditures: $1,291,778 General funding: $965,153 Net Funding increase/(decrease): ($22,034) Highlights:

 Replace Patrol Explorer (old one goes to Development Services):

$41,109 in Capital Equipment 300, GO Bond funding

 Restructuring positions to build future leadership (see next slide)

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Police Command Structure Changes

• One of the key things we have recognized in recent years is the need to build

the next generation of leaders within the department. This can be best accomplished by giving formal leadership opportunities to officers.

• It is proposed that in addition to the current 2 Lieutenants that 2 Sergeant

positions be created.

• The pay structure is shown in more detail on the next slide, but essentially, we

would have a Sergeant 1 classification at the same level as the most senior

• fficers, and a Sergeant 2 classification at one step higher. We would similarly

have Lieutenant 1 and 2 positions at one and two steps higher than the Sergeant 2 classification.

• Depending on various scenarios, the cost of these changes for FY21 versus

continuing with the current budget could vary from nothing to $7,000, but in the most likely scenario, the impact will be around $3,500. This cost is low in part because we will be trading Lt. See’s position for a newly-hired officer, and those that would be promoted would not have as much difference between their old and new salaries as we will save due to that.

Police Salary Schedule- Recommended

FY 21 Salaries Step Officer 6/ Sgt 1 Sgt 2 Lt 1 Lt 2 Chief Annual Salary $64,142.93 $67,610.80 $71,078.67 $74,546.54 $84,537.60

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Fire Budget Summary

 Revenues: $90,500  LOST Transfer In: $142,500 ($10k higher)  Expenditures: $451,871  General funding: $206,847  Net Increase/(decrease): $14,373  Highlights:

Higher expenses anticipated due to larger new building Used SUV in Capital Equipment 300 for transport/EMS Full department physicals year ($7,200 cost) Gear replacement: maintained at $15,000

EMS Budget Summary

• While planning is still underway by the EMS Study

Committee, we are anticipating:

• $30,000 in expenses in the current FY20 budget for training,

equipment and supplies

• $29,631 in expenses in the proposed FY21 budget for training,

supplies, and pay per call for first responders

• While we have assigned a different department code and budget to

EMS, it is expected to operate as a division within the Fire Department, reporting to the Fire Chief

• The Fire SUV included in the proposed budget will also be the primary

EMS vehicle 9 10

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Animal Control

• This department is now showing the

City’s payments to PAWS & More (these were previously in “Other Contractual Services” in Financial Administration).

• We expect to pay PAWS & More approximately $30,678 in the

coming budget, as we go into the 2nd year of our agreement and adjust to their customary rate schedule.

• We expect to pay about $2,500 for dog pound operating
• costs. $1,500 is expected to be covered by fees & fines, and

$1,000 is transferred in from Sanitation.

Development Services Summary

 Revenue: $61,000  Expenditures: $86,418  General Funding: $25,418  Net Increase/(decrease): $2,356  Highlights:

 Budgeted to take Explorer from PD; $2,000 upfit costs included in

departmental budget

 Replacement of GPS pole at a $11,145 expense (shown in Capital

Equipment 300).

 We will likely be looking at staffing changes due to 2 planned departures

in the department, but have not had time to develop a plan yet.

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Library Budget Summary

Revenues: $87,500 Expenditures: $470,580 General Funding: $383,080 Increase/decrease: $52,336 Highlights:

Increases are proposed for a new maintenance contract with Johnson

Controls for the building systems and for a better cataloging system

The vast majority of the increase in budget is due to the proposal to

create a full-time Building Maintenance Technician position to perform janitorial and building maintenance activities for primarily the Library and City Hall/Police/Fire complex, but also other City facilities. See next slide for detail.

Building Maintenance Technician

• Washington has made tremendous investments in its municipal

facilities in recent years. In order to keep these facilities clean, attractive, and appropriately maintained over time, it is proposed to create a full-time Building Maintenance Technician position.

• We expect this position to save us in a variety of areas. For example,
• ur rug contracts for Library and City Hall/Police/Fire (expiring in 2022)

cost the City over $6,000/ year. We also expect to be able to self- perform basic maintenance tasks that are currently contracted out.

• We expect the position to help us plan and budget better for major

maintenance tasks that will be needed as these new facilities begin to age.

• Position is budgeted at the same rate as a Public Works Operator 1. For

FY21, this is $17.97/hour. We are looking for a high-quality, self- starting, conscientious, and long-term employee. 13 14

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Parks Budget Summary

• Revenues: $450
• Expenditures: $329,300
• General Funding: $328,850
• Increase/decrease: $13,004
• Highlights:

▫ Additional funding allowed for grounds maintenance and

utilities, but few other changes in operational budget.

▫ Purchase of a compact utility tractor ($40,000) and pull-behind

batwing mower ($13,900) are allowed in the Capital Equipment budget. We will defer the planned FY20 purchase

• f a 70” zero-turn mower to help pay for these items.

Pool Budget Summary

Revenues: $0 Expenditures: $72,350 General Funding: $72,350 Increase/(decrease): $20,572 Highlights:

Management Fee to YMCA: $2,000. Replace pool heater: $30,000 is allowed. The heater is original to the

facility and has required much more maintenance in recent years. A more efficient heater may reduce utility costs.

Under the new agreement, we are now responsible for chemical costs

(estimated at $9,000/yr).

Continue replacement of lounger chairs: $2,000.

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Pool Maintenance Plan

 Major Maintenance Already Completed:

 Main slide structure sandblasting & repainting- FY14  Bathhouse re-roofing- FY17  FY20: Replace sand filter valve, flange, and bolts; replace non-working & hard to work

mechanical valves, flanges, and bolts for various pumps: $10,539 (completed $3,000+ under budget due to Parks staff installation work)

 Future Maintenance Schedule:

 FY21: Replace pool heater: $30,000  FY22: Apply high-quality epoxy paint with chips to bathhouse floor: $10-14,000  FY23: Sand filter media replacement: $10-12,000  FY25: Comprehensive pool basin repairs and painting: $200-300,000 (cover expense

with FY25 G.O. Bond)

 Unscheduled, will work in as possible: Sandblast & repaint 4 light poles: $4-6,000

Cemetery Budget

Revenues: $68,500 Expenditures: $170,340 General Funding: $101,840 Increase/decrease: ($23,412) Highlights:

 Budget is lower this year due to the FY20 transfer out of

$24,847 to pay the City share of the Woodlawn Shelter project.

 Allowed $50,000 in the Capital Equipment Fund to pay for a

used dump truck to replace our 1998 model that is near the end of its life. 17 18

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Finance, Legal & City Hall

• Revenues (includes property tax): $3,141,219 (up $18,919)
• Expenditures: $985,347 (down $44,403)
• Highlights:

▫ Continue policy of maintaining $1,000,000 fund balance

and transferring any additional at year-end to Fund 309 for City Hall, Police, and Fire building improvements

▫ Transfer out estimated at $267,452.

▫ $26,000 transfer out to Housing Rehab Fund 145 for the

continuation of the Housing Infill Partner Program.

Outside Entity Funding

Requests (tentative at this time):

 WEDG: $30,000 ($5,000 higher than current)  Main Street: $20,000 (same as current)  Tourism Committee: $20,000 (same as current)

 Year 3 of 3 at this level

 Fireworks: $6,500

• Discussion will be held at the 3rd budget workshop on WEDG,

Main Street, and Tourism requests.

• PAWS & More is now shown in the Animal Control

department, and is in Year 2 of a 3-year agreement.

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Airport Budget

Airport is in Fund 002 and

is self-supporting on an operating basis

Revenues: $382,400 Expenditures: $431,357 Fund Surplus (Deficit): ($48,957) Projected FB @ 7/1/20: $322,986 Projected FB @ 6/30/21: $274,028 Highlights:

 Installation of new Fuel Farm- $200,000 project (Project shown

in Capital Projects 301)

Tax Rate Comparison: Current vs. Proposed

Levy Current Rate Proposed Rate Increase/ (Decrease) General 8.10000 8.10000 0.00000 Employee Benefits 2.87433 2.92436 0.05003 General Insurance 0.40755 0.37110 (0.03645) Emergency 0.27000 0.27000 0.00000 Debt Service 3.57206 3.55848 (0.01358) Overall 15.22394 15.22394 0.00000 $100K House City Bill $866.52 $838.45 ($28.07) $100K Biz City Bill $1,370.15 $1,370.15 $0.00

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Road Use Tax Fund

 Revenues: $1.026,183  Expenditures: $1,313,962  Fund Surplus (Deficit): ($287,779)  Projected FB @ 7/1/20: $742,033  Projected FB @ 6/30/21: $454,254  Highlights:  We are drawing down the balance significantly due to:  South 15thAvenue project  South Avenue E project  Airport Projects

 TIF is now paying Road Use back $38,752/year for the foreseeable future, so we

should see the fund balance stabilize over time.

 The projected 6/30/21 fund balance is still 44% of revenues, which is higher than

• ur standard of 35% fund balance for capital-intensive funds.

Debt Service Fund

Total debt service payments for year: $1,214,436. Planned Debt Issuance:

 $5,100,000 2020AB General Obligation issuances are in process, and

payments will begin in FY21.

Total DS Levy responsibility: $913,455. Total levy requested is 3.55848, which is $0.01358/1,000

valuation less than last budget.

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Debt Payments for FY21

• $147,575 for 2015 North Tower/Streets/Fire Truck (Year 6 of 19)
• $168,420 for 2016A Nontaxable Refunding of 2009 GO Bond (Year 4
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• $58,588 for 2016B Taxable Refunding of 2009 GO Bond (Year 5 of

13)

• $101,900 for 2016C Streets/Business Park (Year 5 of 5)
• $352,770 for 2018 Streets/Sewer/Wellness Park (Year 3 of 13)
• $155,940 for 2018 LOST Revenue Bonds (Year 3 of 15)
• $242,402 for 2020A Streets/Equipment (Year 1 of 17)
• $142,781 for 2020B Bell Land (Year 1 of 4)

Historical Tax Levy Rates

16-17 17-18 18-19 19-20 20-21 General

8.10000 8.10000 8.10000 8.10000 8.10000

General Insurance

0.47596 0.46788 0.44341 0.40755 0.37110

Employee Benefits

3.03012 3.10873 3.38686 2.87433 2.92436

Debt Service

3.94471 3.87418 3.62052 3.57206 3.55848 Emergency 0.27000 0.27000 0.27000 0.27000 0.27000

Total

15.82079 15.82079 15.82079 15.22394 15.22394 25 26

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Capital Equipment Fund

Fund Balance at 7/1/19: $142,108 Fund Balance at 6/30/21: $93,311 We are very tight in this fund due to the necessary steps taken

to fund the Municipal Building projects, so are at the stage of “making things work” for the next couple of years.

We had a significant number of capital equipment requests

this year, and have done our best to incorporate the biggest needs.

Priorities for this year include:

 Police patrol unit $41,109  Fire SUV $18,000  M/C dump trucks (2) $138,000  Dev Services GPS pole $11,445  Parks tractor ($40,000) and batwing mower ($13,900)  Cemetery dump truck $50,000

Capital Projects

Major Projects Include:

 North 4th Improvements: $1,952,500  Airport Fuel Farm: $200,000  Whitesell area residential development: $103,939 allowed for

water/sewer stubs & engineering for Phase 1 area

 City Hall/Police completion: $865,859

 Project completion includes $15,000 for development of the Madison

Park expansion

 South Avenue E project: $1,067,751  West Buchanan: $1,330,475 (2nd half of project will fall in FY22)  Wellness Park Phase 1 completion: $2,466,597

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Riverboat Capital Projects

Revenues: $425,000 Expenditures: $425,000

 Wellness Park: $325,000  Downtown Incentive Grants (DIG) Program: $100,000

 Long-term plan for Riverboat Foundation Municipal Grant funds is in budget

appendix, page A9

 The proposed uses beyond FY21 are still subject to approval by the Riverboat

Foundation.

Water Fund Budget

Revenues: $1,888,061 Expenditures: $2,334,651 Fund Surplus (Deficit): ($446,590) Projected FB @ 7/1/20: $707,399 Projected FB @ 6/30/21: $260,809 Highlights:

• Assumes 7.5% increase on usage only. This needs to be higher due to a big

decrease in usage by our largest industrial user over the past couple of years.

• 3rd year of debt payments on the Water Plant, which is expected to be a

$281,321 annual payment for 20 years.

• $529,000 is included for the West Washington Blvd water main project.
• $35,000 is included for an update to the 2013 Water Facility Plan to help us

plan for improvements to our water distribution infrastructure.

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Sewer Fund Budget

• Revenues: $2,463,932
• Expenditures: $2,529,489
• Fund Surplus (Deficit): ($65,557)
• Projected FB @ 7/1/20: $776,986
• Projected FB @ 6/30/21: $711,429
• Highlights:
• Assumes a 3.5% increase on usage only, the same as FY19 & 20
• Debt Payments as follows:
• WWTF SRF Loan: $787,908 (Payment 9 of 30).
• West Side Interceptor: $151,440 (Payment 9 of 30).
• Allowed $100,000 for starting the Egg Sewer Basin evaluation with FOX.
• Budget includes $67,500 net cost for replacing 2nd backhoe, $6150 for

replacing a WWTP mower, and $11,000 for putting flatbeds on 2 WWTP pickups to allow them to be used longer and more effectively.

Sanitation Budget

 Revenues: $507,100  Expenditures: $548,245  Fund Surplus (Deficit): ($41,146)  Projected FB @ 7/1/20: $72,160  Projected FB @ 6/30/21: $31,014  Highlights: Planned drawdown of fund balance to cushion residents from

increase in overall costs under the new contract.

We have 5% annual increases through FY24 already in the

adopted City Code to slowly bring this fund back to a positive

• perating margin.

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